India has been taking measures against Chinese mobile phone companies in an attempt to please the United States, but now that American companies have made a different decision to invest in Vietnam rather than India, Modi's Make in India plan will be hit hard again.
India's manufacturing industry has just started, in 2014 India announced the plan to make in India, but since then Foxconn and other companies have announced that investment in India has not been implemented, until 2017, a Chinese mobile phone company and Foxconn set up a factory in India, so that Indian manufacturing has improved.
In 2019, Foxconn and Apple jointly set up a large-scale factory in India, and then Wistron followed up, and Wistron was even more resolute, directly selling its factory in China to Luxshare Precision, and investing in India, but unfortunately Wistron was also the worst cut by India, only two years later, the Indian consortium forcibly acquired Wistron's factory, and in 2023, Apple will only hand over 1% of the iPhone15 order to Wistron, which can be said to have basically withdrawn from the Indian market.
In recent years, India has repeatedly suppressed Chinese mobile phone companies that have made great contributions to Indian manufacturing, resulting in the unfavorable development of Chinese mobile phones in the Indian market, and in 2023, Samsung has surpassed Chinese mobile phones to regain the first place in the Indian mobile phone market.
At this time, India may think that Indian manufacturing has a certain foundation, and it can do without the support of Chinese mobile phones, and even India wants to start developing high-end industries, such as the chip industry, and spend $10 billion to attract global chip companies to set up factories in India.
Today, 15 U.S. chip companies have invested in Vietnam, with an investment of $8 billion, showing that the U.S. chip industry is more optimistic about Vietnam than India.
First of all, India lacks basic industries, India can't even do the lowest-end assembly industry, Foxconn, which has set up a factory in India, found that the yield rate of the iPhone15 produced is only 50%, which leads to European returns, and Chinese consumers are reluctant to buy, forcing Apple to announce that the iPhone15 in the European and Chinese markets is all made in China.
The second is that India's repeated worries about American companies, many years ago India promised Wal-Mart, Amazon, etc. many benefits, but with Amazon and Wal-Mart investing heavily in India, Indian consortiums have even cheated these companies, and India has also issued huge fines to Amazon and Wal-Mart, which has made American chip companies worry about India's credibility.
Thirdly, India's actions to Chinese mobile phone companies have once again made India's foreign-funded cemeteries famous, and due to India's practices, more than 1,700 foreign-funded enterprises in India have been cancelled from 2022 to the first half of 2023, accounting for as much as one-third of India's foreign-funded enterprises.
Finally, India itself lacks talents, India itself has actually cultivated a lot of talents, but most of these talents have gone to the United States, the chip industry just needs a large number of high-end talents, and these Indian high-end talents who have been in the United States are generally reluctant to return to India, so American chip companies are even more reluctant to invest in India, and even Micron, which had planned to invest in India, finally only stayed in words.
It can be said that India's approach to China's mobile phones, not only failed to win the favor of American companies, but on the contrary, it has exacerbated the concerns of American companies about investing in India, and now the US chip's large-scale investment in Vietnam is undoubtedly a slap in Modi's mouth, high-end manufacturing is still out of reach for India, and the assembly industry is the manufacturing industry that India can attract, I wonder if India should reconsider its attitude towards Chinese mobile phones?